Gold Price Futures (GC) Technical Analysis – Strengthens Over $1949.40, Weakens Under $1931.70

Gold futures are trading at their high of the session after rebounding from earlier losses. The catalysts behind the intraday strength are lower Treasury yields and a weaker U.S. Dollar. The choppy, two-sided trade suggests investors are nervous ahead of Thursday keynote speech by Federal Reserve Chairman Jerome Powell at which he is expected to make a historic announcement about Fed monetary policy.

At 18:26 GMT, December Comex gold futures are trading $1956.50, up $33.40 or +1.74%. Earlier in the session, the market touched a two-week low at $1908.40.

The price action also reflects the idea of more stimulus measures from the Fed. Some of the rally was fueled by short-covering and some by speculative buying.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart, however, momentum is trending lower. A trade through $2024.60 will signal a resumption of the uptrend. A trade through $1874.20 will change the main trend to down.

The minor range is down. This is controlling the momentum. A trade through $1970.30 will change the minor trend to up. This will shift momentum to the upside. A move through $1908.40 will indicate the selling is getting stronger.

The major support is a retracement zone at $1889.70 to $1842.60. This zone stopped the selling at $1874.20 on August 12.

The minor range is $1874.20 to $2024.60. Its retracement zone at $1949.40 to $1931.70 is new support.

The short-term range is $2089.20 to $1874.20. Its retracement zone at $1981.70 to $2007.10 is resistance.

Short-Term Outlook

Look for an upside bias to develop on a sustained move over $1949.40. Look for sellers to try to form a downside bias on a sustained move under $1931.70.